Investors seem to agree with Deutsche Bank that the pending merger of Alliance Unichem and Boots makes strategic and financial sense. The bank upgraded Boots to "buy" from "hold," giving a much-needed lift to Boots in FTSE trading. The Nottingham, England healthcare and pharmacy retailer’s shares rose 12p to 734.5p following the report; Alliance was up 24.5p to 933p.

Boots has struggled mightily against competition from U.K. supermarket chains that, in recent years, have added pharmacy and beauty products to their shelves. Boots and Alliance, which announced their intention to merge in October, expect the tie up to deliver at least €100 million in pretax savings over four years and are projecting increased revenue from cross-selling opportunities. — Suzanne Stevens

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